The present invention relates to a new and distinct variety of peach tree named ‘NJ354’. Our new tree resulted from crossing as the seed parent with ‘White Lady’ peach tree, as the pollen parent. The new variety differs from seed parent NJ318 (unpatented) in that the new variety has firm fruit with a high percentage of red over color, while the seed parent has comparatively soft fruit that typically have a low percentage of red over color. The new variety differs from pollen parent ‘White Lady’ (U.S. Plant Pat. No. 5,821) in that the new variety ripens early, and has non-showy flowers, while the pollen parent ripens in mid-season and has showy flowers. In comparison to the commercial peach variety ‘Sugar May’ (U.S. Plant Pat. No. 8,034), the fruit of the new variety has a brighter red blush, is lower in acidity and matures approximately 5 days later. The fruit and leaves of the new variety are also more tolerant to bacterial leaf spot than ‘Sugar May’. The resulting tree was selected when growing in a cultivated area as the 147th tree in the 88th row of Block D at a fruit research center located in Cream Ridge, N.J.